The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India-Reference-Cited by-同舟云学术

The Unequal Effects of Liberalization: Evidence from Dismantling the License Raj in India

Published:2008-08-01 Issue:4 Volume:98 Page:1397-1412
ISSN:0002-8282
Container-title:American Economic Review
language:en
Short-container-title:American Economic Review

Author:

Aghion Philippe¹,Burgess Robin²,Redding Stephen J²,Zilibotti Fabrizio³

Affiliation:

1. Economics Department, Harvard University, 1805 Cambridge Street, Cambridge, MA 02138.

2. Economics Department, London School of Economics, Houghton Street, London WC2A 2AE.

3. Institute for Empirical Research in Economics, University of Zurich, Blümlisalpstrasse 10, CH-8006 Zürich.

Abstract

We study whether the effects on registered manufacturing output of dismantling the License Raj—a system of central controls regulating entry and production activity in this sector—vary across Indian states with different labor market regulations. The effects are found to be unequal across Indian states with different labor market regulations. In particular, following delicensing, industries located in states with pro-employer labor market institutions grew more quickly than those in pro-worker environments. (JEL J50, L52,L60, O14, O15, O25)

Publisher

American Economic Association

Subject

Economics and Econometrics

Link

https://pubs.aeaweb.org/doi/pdf/10.1257/aer.98.4.1397

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